UBS ETFs Embrace ESG Principles in Major Rebranding Effort
UBS (Lux) Funds Solutions has shared several updates concerning changes to its ETF sub-funds that include name updates and adjustments, so that they’re in sync with ESMA guidelines on terms related to ESG. In other words, this can be referred to as a UBS ETFs rebrand.
The company has also shared that the changes to its ETF sub-funds will be incorporated from May 12, 2025, while stating that the intent behind the changes is to systematize its solutions and enhance the level of sustainability on specific funds.
In terms of rebranding its solution names, some sub-fund names will be made simpler, either by removing the terms ‘(Lux) Funds Solutions’ or by adding the ‘Core’ label to indicate the importance of necessary market exposures. A relevant example would be renaming the UBS (Lux) Funds Solutions - MSCI World UCITS ETF to UBS MSCI World UCITS ETF. It’s worth noting that the objectives, policies, and indices recorded by the sub-funds will remain in the status quo.
Another relevant example we can add to the list is that the sub-fund titled UBS (Lux) Funds Solutions - J.P. Morgan USD EM IG ESG Diversified Bond UCITS ETF will be referred to as UBS J.P. Morgan USD EM IG Screened Diversified Bond UCITS ETF. The change is relevant in terms of indicating the sub-fund’s investment approach appropriately. In addition, the name change sheds light on the fund’s approach to filtering through ESG factors.
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It’s also important to add that the minimum proportion of sustainable investments of many sub-funds will be enhanced to 40%. It highlights the fact that UBS’s dedication to sustainability is in line with investors’ increasing demand for accountable investment choices. The sub-funds that are impacted include the ones with the words ‘Sustainable’ and ‘ESG’ in their titles, as in the case of UBS (Lux) Fund Solutions - Bloomberg MSCI US Liquid Corporates Sustainable UCITS ETF.
Standards will be put in place in terms of the procedure followed for naming share classes. For instance, ‘A,’ which used to demonstrate the availability to all investors on the secondary market, will be removed. Also, classes with currency exposure protection will have an ‘h’ marked on them, while currency brackets will be done away with altogether, to keep things simple.
All the changes shared above will feature in the latest version of the prospectus and important documentation at UBS Asset Management’s Luxembourg office or on the company website.
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In the end, the updates are a way for UBS ETFs to help offer accessible investment products, and at the same time, deal with emerging guidelines and investor preferences for funds that are sustainable and ESG-compliant.
Source: Investing.com
